Early Action Metric (EAM) and the recognition of automatic metering (AMR) Why is this clarification note being

issued? We are aware that some organisations have misunderstood the rules that apply when calculating the benefit organisations can receive for voluntary automatic metering readings (AMR) within the Early Action Metric (EAM). They have considered that provided you install voluntary AMR by 31 March 2011 you will receive the same benefit as if you had the metering installed on 1 April 2010.This is not the case. You receive benefit from the percentage of your supplies measured through AMR during the first year of the Introductory Phase (1st April 2010 31st March 2011). Consequently, the earlier you install such metering and measure supplies through these meters the greater benefit you will receive. This is in line with the intent to reward early action within the CRC. Full details of the calculation of the benefit from voluntary AMR is set out below. The Early Action Metric (EAM) The Early Action metric is designed to reward organisations that have taken initiatives to reduce emissions before the start of, or during, Phase 1 of the CRC scheme. Such initiatives will benefit the organisation when its position in the league table is calculated. The Early Action metric (EAM) consists of two separate elements: Certification under the Carbon Trust Standard (CTS), formerly the Energy Efficiency Accreditation Scheme (EEAS) or another, approved equivalent scheme. The percentage of your organisations supplies from electricity and gas (core and residual, but excluding those covered by mandatory half hourly meters (HHMs) which are supplied and measured through voluntarily installed automatic metering reading meter (AMR) HHMs and dynamic unmetered supply (UMS) in the 2010/2011 reporting year. Both elements have a 50% weighing in the EAM. Clarification how the score for the AMR element of the EAM be calculated? As per the CRC Order (Schedule 8: Achievement and performance table, Paragraph 5: Early Action) the AMR calculation for the EAM will be based on electricity and gas supplied and measured through voluntarily installed AMRs and the relevant dynamic supplies during the first year of the phase (i.e. between 1st April 2010 and 31st March 2011). Supplies of electricity measured through settled HHMs [1] or supplies of gas measured through a daily meter [2] that a participant has been required to install under the Balancing Settlement Code for Electricity or the Uniform Network Code for gas do not count towards the EAM.

Meters installed to comply with a Government mandate [3] for the roll out of AMR will still be considered as voluntarily installed automatic meters for the purposes of CRC where they are installed before 1st April 2011 [4] . This is to enable participants with these meters who did not have the option to install metering voluntarily to perform well in the Early Action metric. As explained above, it is the electricity and gas supplied and measured through voluntarily installed AMR meters prior to 1st April 2011 which counts towards the EAM. If an organisation installed the meters on the 30th March 2011 they therefore would not get a maximum score under EAM as a whole years supplies would not have been measured by the AMR. To be able to get the maximum percentage for the AMR component, an organisation would effectively need to have voluntarily installed automatic meters by the end of March 2010 to measure all of its electricity and gas supplies not covered by mandatory meters. NB: Where all of the electricity is measured by a settled half hourly meter required to be installed and all of the gas supplied is measured by a daily meter required to be installed, the percentage given under the AMR component of EAM is 50%.

How will the AMR element of EAM be calculated? 1. ADD total supply of electricity (KWh) (including dynamic supply) X1 and total supply of gas Y1 (KWh, uplifted for estimations where appropriate, not including electricity generating credits) to get figure XY1. 2. ADD total supply of electricity through mandated meters (ie required to be installed) X2 and total supply of gas through mandated meters (ie required to be installed) Y2 (KWh) to get figure XY2. 3. Perform calculation XY1 MINUS XY2 to get figure Z. 4. ADD total supply of electricity (including dynamic supply) through automatic meters not required to be installed (X3) and total supply of gas through automatic meter readings not required to be installed (KWh) (Y3) to get figure XY3. 5. AMR % calculation = XY3/Z *100 This will then be added to the CTS/equivalent element if appropriate. Organisations will need to have several figures to perform this calculation ie a figure of the supply before AMR installed, and a figure of supply measured through AMR in order to calculate XY1 and XY3.

[1] Half Hourly Meters (HHM) supply electricity settled on the Half Hourly market and are required in situations where the average peak electricity demand over the three months of highest consumption within a year exceeds 100kW over the previous 12 months. Note: Not all half hourly meters settled on the half hourly market are classed as mandatory. Liaise with your electricity supplier to confirm your mandatory meters. [2] Daily meters supply gas to sites where the annual consumption level is 58,600,00kWh or more. These meters are billed based on exact consumption using a meter which provides daily readings. Liaise with your gas supplier to confirm your mandatory gas meters. [3] As of 1 April 2009, a mandate was introduced for energy suppliers to roll out AMR metering to profile class 5-8 sites and gas sites consuming more than 732,000kWh per year. This mandate applies in respect Great Britain. http://www.decc.gov.uk/media/viewfile.ashx?filepath=what we do/supporting consumers/smart energy meters/file49172.pdf&filetype=4 [4] DECC Response to CRC consultation 7 October page 72 http://www.decc.gov.uk/en/content/cms/consultations/crc/crc.aspx

What supplies are included or excluded? Performance under the AMR element of the EAM is determined in relation to the amount of gas or electricity included in your CRC emissions (core supplies and any residual supplies brought in to meet the residual percentage requirement),supplied and measured through voluntarily installed AMR qualifying meters in the first year of the introductory phase (1 April 2010 to 31 March 2011). You will not be able to claim credit under the EAM for voluntarily installed AMRs which do not cover supplies included in your CRC emissions (i.e. AMR installed on residual electricity and gas supplies not included as part of your CRC emissions).

What meters are considered to be AMRs recognised under the EAM? Automatic Meter Reading meter means: a) in respect of electricity i) a settled half hourly meter not required to be installed or ii) a non settled half hourly meter b) in respect of gas i) a daily meter not required to be installed or ii) an hourly meter. Dynamic supply will also be recognised under this metric. Note: AMRs for the EAM are also referred to as non-settled HHMs The definitions of these meters is set out in Schedule 2 of the CRC Order and our guidance document "meters and metering" which is available on our website explains the different types of meters in more detail: http://www.environment-agency.gov.uk/business/topics/pollution/127371.aspx